Required information

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During the current year, Ron and Anne sold the following assets: $($Use the dividends and capital gains tax rates and

tax rate schedules.$)$

$$30,000$ of the gain is $25$ percent gain $($from accumulated depreciation on the property$).$

Capital Asset $|$ Market Value $|$ Tax Basis $|$ Holding Period

L stock $|$ $ $54,400|$ $ $43,200|>1$ year

M stock $|32,400|43,400|>1$ year

N stock $|34,400|24,200|<mtext\; id="EditorElement\_1483481"></mtext><mn\; id="EditorElement\_1483482">1</mn>$ year

O stock $|30,400|37,400|<mtext\; id="EditorElement\_1483517"></mtext><mn\; id="EditorElement\_1483518">1</mn>$ year

Antiques $|11,400|6,200|>1$ year

Rental home $|304,400*|92,200|>1$ year

Ignore the Net Investment Income Tax.

a$.$ Given that Ron and Anne have taxable income of only $$17,800($all ordinary$)$ before considering the tax effect of their asset sales,

what is their gross tax liability for $2023$ assuming they file a joint return?

b$.$ Given that Ron and Anne have taxable income of $$404,400($all ordinary$)$ before considering the tax effect of their asset sales, what is their gross tax liability for $2023$ assuming they file a joint return?